itsme,
I used to sell these HP's just until a month ago when I worked at a large retailer, I knew more about PC's than anyone in the store (staff of 20 idiots) and most of the time I ended up explaining the technicalities of these machines. We offered three models, one in 20 inch screen size and two in 23 inch.
I have used these and can tell you that the touch screen is very very good, never had any issue whatsoever. I also know that the returns compared to the laptops and desktops that we sold was negligible. It was more the fault of the user than the unit.
Having said all that, I agree with some of the comments made by others, like upgradability. Sure enough the standard tower cpu's have more room in that respect. In my opinion the computer you buy today will be obsolete anyway in the next three years no matter it is a laptop, or a desktop. The only reason for that is that the newer software is more demanding as time passes, three years later if you install the latest and greatest software on this machine it will slow it down considerably. As it ages it will start to drag, time for a new machine. That is what computer technology is all about. One year in computer technology is equal to a decade, 3 years, a generation.
All in all I would say it is a decent machine which will give you good service.
I agree with Flops about the iMac, the best desktop there is, but at a a price. I have also played around with a Samsung desktop similar to HP and that too is a great option, very elegant styling and well featured.
Hope you decide on a machine that well suits your needs.